MNRE issues guidelines for incentivising DISCOMs under PM Surya Ghar Muft Bijli Yojana

New Delhi: The Ministry of New and Renewable Energy (MNRE) has issued guidelines for incentivising power distribution companies (DISCOMs) to install rooftop solar projects under the PM-Surya Ghar: Muft Bijli Yojana in their service areas. “Under the scheme, the DISCOMs are required to implement several facilitative measures to promote rooftop solar in their respective areas, such as ensuring the availability of net meters, timely inspection and commissioning of installations, vendor registration and management, and interdepartmental convergence for solarizing government buildings,” stated the MNRE in its guidelines.

To enable DISCOMs to undertake these tasks more effectively and to create greater motivation within DISCOMs as State Implementation Agencies (SIAs) for the scheme, the PM-Surya Ghar: Muft Bijli Yojana includes a provision to incentivize DISCOMs. This component has an outlay of Rs 4,950 crore. DISCOMs or power departments will serve as the SIAs at the state/UT level.

The total financial outlay for the 'Incentives to DISCOMs' component is Rs 4,950 crore, as stated by the MNRE. The ministry is implementing the Grid-Connected Rooftop Solar (GCRT) Phase II Programme, under which incentives to DISCOMs were provided under Component B. With the approval of PM-Surya Ghar: Muft Bijli Yojana, the Phase II programme has been subsumed under the new scheme. This scheme component will continue in alignment with Component B of the GCRT Phase II programme.

“The Incentives to DISCOMs shall provide resources for participation in IEC and branding activities, creating conducive regulatory and administrative mechanisms to ensure adherence to timelines for approvals (feasibility, commissioning, inspection, grievance redressal, etc.), achieving targets for implementation, ensuring the timely availability of net meters, saturating RTS on government buildings, utilizing incentives for RTS-dedicated activities, and incentivizing field-level staff through recognition and rewards, among other measures to be undertaken by State DISCOMs or other agencies for RTS deployment,” said the MNRE.

Criteria for DISCOMs to Seek Incentives:

DISCOMs will receive incentives based on their achievement in the installation of additional grid-connected rooftop solar capacity beyond a baseline level. The scheme also includes an indicative rewards system to recognize and motivate the field staff of DISCOMs. Specifically, the incentives are structured to reward DISCOMs with 5 percent of the applicable benchmark cost for achieving an additional capacity of 10 percent to 15 percent over the installed base and 10 percent for capacities beyond 15 percent. This progressive incentive mechanism aims to drive higher participation from DISCOMs and ensure robust growth in rooftop solar capacity.

Under PM-Surya Ghar: Muft Bijli Yojana, the government aims to install rooftop solar plants in 1 crore households by FY2026-27, with a total financial outlay of Rs 75,021 crore. The scheme is expected to add 30 GW of rooftop solar capacity across households and government buildings.